February 13, 2025 (Investorideas.com Newswire) Investorideas.com, a go-to platform for big investing ideas for traders, including oil and gas stocks reports on trading for Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF).
The stock makes the TSX top gainers list on news of record reserves. The stock is trading at $8.22, up 0.90. gaining 12.30% on volume of over 1.2 Million shares as of this report.
Valeura announced the results of its third-party independent reserves and resources assessment as at year-end 2024.
Highlights
Record high year-end reserves: 32 MMbbl proved (1P), 50 MMbbl proved plus probable (2P) and 60 MMbbl proved plus probable plus possible (3P) reserves;
2P reserves replacement ratio of 245% even after annual production increase of 12%;
2P reserves and end of field life ("EOFL") increased at every field;
2P reserves net present value before tax of US$934 million and US$752 million after tax(1);
Considering year-end 2024 cash position of US$259 million, Company net asset value ("NAV") is US$1,012 million, equating C$13.6 per common share(2);
Contingent resources(3) of 48 MMbbl, more than double the total at end 2023; and
Decommissioning costs significantly reduced through engineering studies and increased EOFL to beyond 2030.
(1) Discounted at 10% (NPV10)
(2) Proved plus probable (2P) NPV10after tax plus cash of US$259.4 million (no debt), using US$/C$ exchange rate of 1.435, and 106.65 million common shares outstanding, as at December 31, 2024
(3) Unrisked 2C (best estimate) contingent resources
Dr. Sean Guest, President and CEO commented:
"I am pleased to announce the results of our end 2024 reserves and resources evaluation, which shows again that our aggressive work programme can increase the ultimate potential of our fields and add value to our Company. In our second full year of operations we have again added more than double the reserves we produced, achieving a 2P reserves replacement ratio of 245%. This is a significant feat, considering we also increased production by 12% relative to 2023.
We also added to the ultimate potential of our portfolio, with all Thailand fields now having an economic field life lasting beyond 2030. Since taking over these assets, we have added at least four additional years of production life to each field. This means more years of future cash flow and is therefore a prime example of one key element of our strategy in action - driving further organic growth.
The net asset value of our business is now over US$1 billion - a record high, equating to more than C$13.6 per common share. This is based on our 2P after tax NPV10 increasing by 76% year-on-year, coupled with a new record year-end cash position.
In addition to discovering volumes through the drill bit and aggressively working to build our understanding of the intricate subsurface environment, various other financial and engineering studies have also added value. Our field abandonment costs have been reduced further through updated engineering studies which are benchmarked to actual abandonment operations in the Gulf of Thailand. The effect of this, combined with extended field life across the portfolio, is expected to reduce our Asset Retirement Obligation ("ARO") on our balance sheet by more than 50% since we first assumed operatorship of these assets.
Recent news:
https://ca.finance.yahoo.com/news/valeura-energy-inc-record-reserves-074400710.html
Research oil and gas stocks at Investorideas.com free stock directory
https://www.investorideas.com/OGSN/Stock_List.asp#
About Investorideas.com - Big Investing Ideas
Investorideas.com is the go-to platform for big investing ideas. From breaking stock news to top-rated investing podcasts, we cover it all. Our original branded content includes podcasts such as Exploring Mining, Cleantech, Crypto Corner, Cannabis News, and the AI Eye. We also create free investor stock directories for sectors including mining, crypto, renewable energy, gaming, biotech, tech, sports and more. Public companies within the sectors we cover can use our news publishing and content creation services to help tell their story to interested investors.
Disclaimer/Disclosure: disclaimer and disclosure info https://www.investorideas.com/About/Disclaimer.asp
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
Learn more about our news, PR and social media, podcast sponsorship and ticker tag services at Investorideas.com
https://www.investorideas.com/Investors/Services.asp
Learn more about digital advertising and guest posts
https://www.investorideas.com/Advertise/
Follow us on X @investorideas @stocknewsbites
Follow us on Facebook https://www.facebook.com/Investorideas
Follow us on YouTube https://www.youtube.com/c/Investorideas
Sign up for free stock news alerts at Investorideas.com
https://www.investorideas.com/Resources/Newsletter.asp
Contact Investorideas.com
800 665 0411
